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Uniform costing is best described as:
AA standardised tax-costing technique
BA distinct costing method used by a single company
CCosting applied uniformly across all overheads only
DThe adoption of identical costing principles and procedures by several units of the same industry
Answer & Solution
Correct answer: D. The adoption of identical costing principles and procedures by several units of the same industry
1. Uniform costing is not itself a distinct method of costing.
2. It is the use of common principles and procedures by several undertakings (often the same industry).
3. It enables valid inter-firm comparisons and helps eliminate inefficiencies.
_Source: ICMAI BoS CMA Foundation Paper 2 (Cost Accounting), Module 4 §4.1-4.2 (Methods & Systems of Costing), p. 297-308_